How To Calculate For SMEs
For profit-making businesses, R&D tax credits reduce your Corporation Tax bill. The rate of relief is 25%. So if your R&D spend last year was £100,000, you could get a £25,000 reduction in your tax bill.
For a loss-making SME, R&D tax credits will be given in the form of a cash payment. In these circumstances the rate of relief equates to broadly 33%. So if your R&D spend last year was £100,000, you could get a £33,000 cash credit.